Portman Welcomes Decision to Take Action Against China's Hoarding of Rare Earth Minerals

WASHINGTON, D.C.—U.S. Sen. Rob Portman (R-OH) today welcomed President Obama’s announcement that the United States has requested consultations with the People’s Republic of China at the World Trade Organization (WTO) regarding China’s unfair export restraints on rare earths. Consultations are usually the first step of a WTO dispute settlement process. Last fall, Sen. Portman, a former U.S. Trade Representative, and Sen. Sherrod Brown (D-OH) urged U.S. Trade Representative Ron Kirk to protect Ohio manufacturers and workers by initiating a WTO case on China’s hoarding of rare earth materials.

“This is welcome news for Ohio’s manufacturing sector,” said Portman, who initiated the first-ever legal case to be litigated and won against China before the WTO because of China's unfair treatment of U.S.-made auto parts. “All too often our state’s job creators are hurt by China’s unfair trade practices. China’s quotas on rare earth materials put Ohio companies reliant on them at a disadvantage and creates an unlevel playing field. I’m glad the Obama Administration has agreed to challenge China’s actions and hold them accountable.”

Ohio and American manufacturers rely on rare earth materials for the production of a number of products, including wind turbines, lighting, and electronics. China currently accounts for 97 percent of the world’s supply of these materials, and has imposed quotas and heavy tariffs on their export, putting American manufacturers at a severe disadvantage.